In today’s episode of The Small Business Show, we will be discussing how to create a solid business plan with Melinda Emerson, America’s number one small business expert, CEO of Quintessence Group, and Best-selling Author.
Creating a business plan 12 months before launching your business is highly recommended. During this time, you should research, talk to the right people, save money, and most importantly understand who your target customer will be. To start with, it’s crucial to define the reason behind why you want to start this business. This should come from your purpose, values and mission.
Next up is financing your business. It’s important to remember that banks generally do not lend money to startups; therefore, most startups are funded using personal savings. Then comes the operation aspect – you need to determine if you have the current skills or need to acquire new ones in order to run your business successfully. Some entrepreneurs may even need to work for another company similar to their desired one before launching their own in order gain a clear understanding of their plan.
Finally, it’s essential to have a marketing plan and know your target audience inside out. You must understand where potential customers go and what they like so you can build an effective marketing strategy around it. According to Emerson “If you can’t differentiate your business from your competitors then potential customers will likely go towards bigger well-known brands”. Entrepreneurs must also prioritize realism when it comes to sales projections – aim for a 20-25% increase which can help develop budget on an annual, quarterly and monthly basis. Lastly